Binance Affiliates Sue RedotPay Co-Founders for $472.8M Over Alleged User Diversion

Three Binance-affiliated companies have sued RedotPay's co-founders in Hong Kong, seeking $472.8 million over allegations that the payments firm diverted more than 470,000 Binance users to its competing stablecoin card network.

The lawsuit targets RedotPay Card top-ups and claims that the founders breached a commercial agreement signed in March 2025. The partnership gave RedotPay access to Binance users while extending Binance Pay across RedotPay's payment network, but allegedly excluded funding RedotPay cards directly through Binance Pay.

The plaintiffs claim RedotPay allowed and encouraged customers to use Binance Pay balances for card top-ups without separating those funds from prohibited payment activity. Approximately $304 million allegedly moved from Binance Pay users into the RedotPay ecosystem through this arrangement, with each diverted customer estimated to have a lifetime value of $925.

Binance discovered the disputed activity in March 2026 and discontinued Binance Pay support on RedotPay effective April 3. The exchange publicly described the decision as part of a review of its merchant partners.